In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader who asks: " What's your Foolish take on Starbucks (SBUX +1.55%)? What about their breathtaking P/E? How about Realty Income (O 1.01%)?" Jason talks about the number of growth opportunities that Starbucks still has today from the acquisitions of Evolution Fresh, La Boulange, and Teavana to the addition of drive-thrus in its new stores. Further, Jason clarifies why Starbucks has such a high P/E ratio today and how investors should view the company. While Realty Income is a REIT that can generate higher dividend income, Jason also says why he's not sold on the long-term prospects of the company today.
Is Starbucks' Valuation Too Hot to Handle?
By Jason Moser – Dec 20, 2013 at 5:57PM
NASDAQ: SBUX
Starbucks
Market Cap
$98B
Today's Change
(1.55%) $1.31
Current Price
$85.84
Price as of October 21, 2025 at 3:58 PM ET
Starbucks is a great company, but does its valuation make it an unreasonable buy?
About the Author
Jason Moser is a Senior Investment Analyst and Lead Advisor at The Motley Fool and has been with the company since 2010. Jason covers payments, fintech, cloud communications, cloud computing, and tech stocks. He holds a B.A. in Economics from Wofford College.